Proposition NN: Keep and Spend Money for Education and Other Purposes
CO has no rebuttals; Blue Book arguments are written by Legislative Council Staff.
Page numbers/running headers removed from extracted text.
Shall state investment in K-12 public education increase two percent each year for the next ten years, with investments used to increase teacher pay, improve teacher retention, lower class sizes, and increase access to career and technical courses, without raising taxes but instead funded by raising the annual limit on state fiscal year spending only by the amount spent on public K-12 education as a voter-approved revenue change, and requiring an annual publicly released, independent audit to show how the new investments are spent?
A “yes” vote on Proposition NN allows the state to keep some or all of the revenue that otherwise would be refunded to taxpayers under TABOR. The retained revenue must be spent on K-12 education, programs that support children, and any other purposes.
A “no” vote on Proposition NN maintains current TABOR refunds and funding levels for K-12 education, programs that support children, and other state purposes.
Not published by the state
Taxpayer Impacts Proposition NN is expected to reduce the amount refunded to taxpayers by $329.9 million in the current 2026-27 budget year, $521.0 million in the 2027-28 budget year, and by varying amounts in future years. This eliminates TABOR refunds for budget years 2026-27 and 2027-28. Table 1 shows estimated TABOR refunds under Proposition NN for certain income levels. Table 1 Estimated TABOR Refunds for Certain Income Levels Adjusted Gross Income $50,000 2027 Refund Current Law: Single Filers 2027 Refund Current Law: Joint Filers 2027 Refund Prop. NN: All Filers 2028 Refund Current Law: Single Filers 2028 Refund Current Law: Joint Filers 2028 Refund Prop. NN: All Filers $28 $56 $0 $58 $86 $0 $75,000 $100,000 $200,000 $500,000 $21 $28 $38 $65 $42 $56 $76 $130 $0 $0 $0 $0 $39 $68 $121 $276 $58 $96 $162 $352 $0 $0 $0 $0 Note: This table assumes that taxpayers claim the standard deduction and no other deductions. This table shows TABOR refunds for individual taxpayers, not corporations. Corporations are not expected to receive TABOR refunds in 2027, and are expected to receive smaller TABOR refunds than individuals at the same income level in 2028. A forecast of state revenue subject to TABOR is not available beyond budget year 2027-28. The impact of Proposition NN on TABOR refunds will vary significantly across different years, such that it could have no impact on TABOR refunds in some years and reduce them by over $1,000 per taxpayer in other years. The actual amount that the measure reduces TABOR refunds will depend on how much money the state collects above the current TABOR limit in future years. State Spending The measure increases state spending by an estimated $329.9 million in budget year 2026-27 and $521.0 million in budget year 2027-28 on net, and by varying amounts in future years. Changes in state spending are shown in Table 2. Table 2 Changes in State Spending Under Proposition NN Use Current Year 2026‑27 K-12 Education $241.5 million General Government Purposes -$153.1 million -$153.1 million Total Change in Spending $329.9 million $521.0 million Property Tax Reimbursements Programs That Support Children Office of State Auditor Budget Year 2027‑28 $0 $206.1 million $241.5 million $234.0 million $0 $234.0 million $20,000 As shown in Table 2, $153.1 million that would be available for the general state budget under current law is instead deposited in the Children’s Account for budget years 2026-27 and 2027-28 only. This reduces General Fund spending in each of these two years. Long‑term spending. After ten years, there is no longer a requirement for half of the money in the account to be spent on K-12 education and half on children’s programs. Beginning in the 2036-37 budget year, the measure increases state spending for property tax reimbursements and funding for teacher pay and retention, smaller class sizes, and career and technical education. Any remaining funds may be used for any purposes as determined by the state legislature. School Districts Proposition NN increases state funding for school districts by an estimated $241.5 million in budget year 2026-27 and $234.0 million in budget year 2027-28. Funding for teacher pay and retention, smaller class sizes, and career and technical education will be distributed based on each school district’s percentage of statewide school finance funding under the state’s new school finance formula. Funding for school services, disability services, and increasing annual instructional hours will be distributed in a manner determined by the state legislature.
1) Proposition NN raises teacher pay, reduces class sizes, and improves career and technical education, benefitting every school district in the state. A state study found that Colorado’s schools face a funding shortfall of $3.5 billion, or about $4,000 per pupil. Proposition NN redirects money the state already collects to Colorado’s kids and classrooms, keeping experienced teachers in the classroom and expanding course options and support. The measure pairs the investment schools need with the accountability taxpayers deserve. 2) Proposition NN frees up funds that should already be supporting Colorado’s children. The price of educating and caring for a child grows year after year, and the current revenue limit does not keep pace. As a result, the state is falling behind on the services that families depend on most. Permanent relief from this limit is long overdue. Proposition NN uses existing revenue to address the real and rising costs of child care, universal preschool, and other early childhood needs.
Colorado Legislative Council Staff (Blue Book; arguments are prepared by nonpartisan staff with public comment, not signed by proponents)
1) Proposition NN is essentially a tax increase, permanently eliminating or reducing TABOR refunds. TABOR refunds are a taxpayer right. Eliminating or sharply reducing those refunds means that government will keep more of the money that families earn. For households already stretched thin, losing TABOR refunds is a significant financial hit. TABOR was enshrined in the state constitution to protect taxpayers against unchecked government growth. 2) Proposition NN eventually hands the state over $5 billion per year at the expense of Colorado families. Funding for Colorado schools has increased 25 percent over the last five years, while enrollment continues to decline. Before reaching deeper into taxpayers' pockets, the government should demonstrate it has exhausted every avenue to reduce wasteful spending, eliminate redundant programs, and deliver existing services more efficiently.
Colorado Legislative Council Staff (Blue Book)
Both columns use the same layout. Text is quoted from the official state guide. Views expressed belong to the argument authors.